Ethereum has shown a strong rally in recent weeks, supporting the optimism of investors who expect to reach its all-time high again. Ethereum's funding graph reflects the aggressiveness of market orders executed by buyers and sellers. Positive values indicate bullish sentiment, and negative values indicate bearish expectations among traders for the future.
After the correction of price consolidation, which was accompanied by a decrease in funding levels, both indicators increased significantly. If this trend continues, it indicates a long-term bullish movement of Ethereum.
However, while rising funding levels are consistent with a bull market, excessively high values can cause problems. Increased rates make it more likely that long positions will be liquidated, which can lead to a sharp decline in prices. Therefore, keeping a close eye on funding levels is important during Ethereum's bull run.